Question

Problem 19-2A Bell Company, a manufacturer of audio systems,started its production in October 2017. For the preceding 3 years,Bell had been a retailer of audio systems. After a thorough surveyof audio system markets, Bell decided to turn its retail store intoan audio equipment factory. Raw materials cost for an audio systemwill total $77 per unit. Workers on the production lines are onaverage paid $13 per hour. An audio system usually takes 6 hours tocomplete. In addition, the rent on the equipment used to assembleaudio systems amounts to $5,070 per month. Indirect materials cost$5 per system. A supervisor was hired to oversee production; hermonthly salary is $3,700. Factory janitorial costs are $2,030monthly. Advertising costs for the audio system will be $9,030 permonth. The factory building depreciation expense is $6,360 peryear. Property taxes on the factory building will be $8,520 peryear. Assuming that Bell manufactures, on average, 1,530 audiosystems per month, enter each cost item on your answer sheet,placing the dollar amount per month under the appropriate headings.Total the dollar amounts in each of the columns. Product Costs CostItem Direct Materials Direct Labor Manufacturing Overhead PeriodCosts Raw materials $ $ $ $ Wages for workers Rent on equipmentIndirect materials Factory supervisor’s salary Janitorial costsAdvertising Depreciation on factory building Property taxes onfactory building $ $ $ $ Compute the cost to produce one audiosystem. (Round answer to 2 decimal places, e.g. 15.25.) Productioncost per system $